Versamet Royalties closes $141.6-million offering

Executive Summary

• Versamet Royalties Corp. has closed a bought deal public offering of 10.3 million common shares (including partial exercise of overallotment) at $13.75 per share, generating approximately $141.6 million in gross proceeds.
• The company anticipates the immediate closing of a concurrent non-brokered private placement with strategic shareholder Tether Investments S.A. de C.V., which will issue 1,575,712 shares for approximately $21.7 million in gross proceeds.
• Net proceeds from both transactions will be used to repay indebtedness, finance future acquisitions, and for general corporate purposes, significantly enhancing the company's financial flexibility.

Key Details

• Public Offering Structure: Sold 10.3 million common shares, including the partial exercise of an overallotment option for 1.2 million shares.
• Price: $13.75 per common share.
• Gross Proceeds (Public Offering): Approximately $141.6 million.
• Underwriters: Syndicate led by BMO Capital Markets and National Bank Financial Inc. as joint bookrunners; included ATB Cormark Capital Markets, Canaccord Genuity Corp., and Raymond James Ltd.
• Concurrent Private Placement:
  • Investor: Tether Investments S.A. de C.V.
  • Shares Issued: 1,575,712 common shares.
  • Price: $13.75 per share.
  • Gross Proceeds: Approximately $21.7 million.
  • Post-Transaction Ownership: Tether Investments is anticipated to own approximately 12.7% of issued and outstanding common shares.
  • Hold Period: Shares subject to a hold period expiring four months and one day from the date of the release.
  • Regulatory Status: Constitutes a related party transaction under Multilateral Instrument 61-101; exempt from formal valuation and minority shareholder approval as fair market value was below 25% of market capitalization.
• Use of Proceeds: Repayment of indebtedness, financing future acquisitions, and general corporate purposes.
• Jurisdictions: Completed in all Canadian provinces/territories except Quebec (via prospectus supplement to short form base shelf prospectus dated Aug. 1, 2025), in the United States via Rule 144A private placement, and in other jurisdictions via applicable exemptions.

Notable Quotes

• "We are delighted to welcome new global institutional investors as we continue to broaden and expand our shareholder base. We also value the ongoing support of our strategic shareholder, Tether. This financing significantly enhances our financial flexibility and positions the company to execute future acquisitions." — Dan O'Flaherty, Chief Executive Officer